How to buy crypto? What investors should know

In 2009, when Satoshi Nakamoto created Bitcoin's initial "Genesis" block, buying cryptocurrencies was complex. Today, it's simpler. Whether you're a newcomer or a business eyeing Bitcoin's potential, this guide provides an overview of buying crypto in 2024.

Selecting a platform for purchasing cryptocurrency

Initially, you must choose a platform for purchasing cryptocurrencies. Here are different types of platforms to consider:

• Centralized exchanges (CEXs): These are user-friendly platforms supporting various regions and currencies, ideal for beginners but may have higher fees and custodial risks. Notable examples are Coinbase, Kraken, Crypto.com, and Binance.
• Decentralized exchanges (DEXs): These offer enhanced security and privacy by allowing users to control their funds. Popular options include Uniswap, dYdX, and PancakeSwap.
• Peer-to-peer (P2P) platforms: These connect buyers and sellers directly, providing a private buying experience but may involve risks of scams.
• Non-custodial payment platforms: These platforms enable users to buy/sell crypto with lower fees than CEXs while retaining self-custody of funds, functioning as payment processors like Swapin.

Selecting and configuring a cryptocurrency wallet

After picking a platform, the next step is to choose a secure wallet for storing your purchased cryptocurrencies. Here's what you should consider:

• Different wallet types: Explore various wallet types like custodial, non-custodial, hot, and cold wallets, considering their advantages and disadvantages based on your requirements.
• Security measures: Regardless of your crypto acquisition method, prioritize security by learning about best practices such as protecting private keys, keeping seed phrases offline, using 2FA where available, and more.
• Wallet setup: Follow your chosen provider's guidelines to create and configure your wallet, including storing recovery phrases and private keys securely.

For detailed information on selecting a crypto wallet and popular options, refer to this resource.

Exploring non-custodial payment providers

Non-custodial platforms such as Swapin present a simplified procedure:

• Direct acquisition: Purchase cryptocurrencies directly from your bank account, transferring them straight to your preferred crypto wallet.
• Deposit-free experience: Removes the need to fund an exchange account, streamlining the buying process.
• Enhanced security: Minimizes exposure to risks associated with exchanges by allowing you to manage your own keys and funds securely.
• Reduced fees: Unlike centralized exchanges that may charge various fees like deposits, transactions, and withdrawals, non-custodial providers often adopt a fee structure with potentially lower costs.

Other key factors to consider

When purchasing cryptocurrencies, it's crucial to assess the following aspects of your chosen platform:

• Security measures: Evaluate the provider's security protocols, including their licensing, customer safety measures, and whether they offer custodial or non-custodial services.
• Fee structure: Understand the fees associated with buying, selling, or using cryptocurrencies on the platform, as these fees can significantly impact your overall expenses.
• Currency support: Confirm that the platform supports both your local fiat currency and the specific cryptocurrencies you intend to purchase.
• Geographical coverage: Ensure that the platform operates in your country and accepts your preferred payment methods.
• User experience and customer support: Opt for platforms with a user-friendly interface, especially if you're new to crypto. Additionally, access to responsive customer support can be crucial for addressing any issues or queries promptly.